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BofA Says Take Profit on ‘Bear Rally’ as Stock Outflows Resume

  • Stocks, cash see weekly outflows; bonds have inflows: BofA
  • Hartnett expects S&P 500 to be range-bound until Fed meeting

Investors have resumed shunning global stocks in favor of bonds, according to Bank of America Corp. strategists, who say the time is right to step back from US equities after the strong rally in July.

Global equity funds had outflows of $2.6 billion in the week through Aug. 3, according to a note from the bank, after last week seeing their first additions in six weeks. US stocks had redemptions of $1.1 billion, and while $4.1 billion left cash, global bonds had additions of about $12 billion, the most since November, BofA said, citing EPFR Global data.